Investing.com – U.S. futures pointed to a slightly lower opening bell on Monday, as bond yields rose and investors waited for earnings results from top technology firms.The S&P 500 futures was up over half a point or 0.03% to 2,672.25 as of 6:47 AM ET (10:47 GMT) while Dow futures was flat at 24,432.0. Meanwhile tech heavy Nasdaq 100 futures rose over four and a half points or 0.07% to 6,681.0.Bond yields have risen to their highest levels in four years, as inflation has added to expectations of continued rate hikes from the Federal Reserve. ...
Investing.com - The dollar extended early gains against a currency basket on Monday, rising to one-and-a-half month highs, driven up by a rise in U.S. bond yields, while mixed euro zone private sector survey data failed to support the euro.
Investing.com - Gold prices fell to their lowest levels in two weeks on Monday as a stronger dollar and renewed risk appetite dampened demand for the precious metal.
MAY 20: Newly redesigned $100 notes lay in stacks at the Bureau of Engraving and Printing on May 20, 2013 in Washington, DC. The greenback rallied on Monday, notably against the yen, with a key dollar index ascending to a three-month high as a U.S. benchmark yield was on the cusp of breaking above a psychologically significant level at 3%. The ICE U.S. Dollar Index (IFUS:DX-Y.NYB), which gauges the buck against a basket of six currencies, climbed 0.4% to 90.704, trading around its highest level since January.
Investing.com - The dollar was holding steady near two week highs against a currency basket on Monday supported by expectations for further interest rate hikes this year, while waning geopolitical risk dampened demand for the safe haven yen.
The downside momentum in the gold market suggests sellers are increasing their pressure on the market. The recent bottom from April 13 at $1335.50 was taken out easily earlier today. If selling volume continues to rise then we could see a test of the April 6 bottom at $1322.60.
The ECB meets on Thursday against a backdrop of concern about a global trade spat and a softening in euro zone economic data that could potentially hamper the central bank's plans to unwind its extraordinary monetary stimulus. In March, the European Central Bank dropped a long-standing pledge to increase its bond buying if needed, taking another small step in weaning the euro zone economy off protracted quantitative easing (QE). Just how much recent economic and international developments are impacting the ECB's plans to unwind QE could well make for a lively debate.
Asian equities have started the week cautiously and Europe has been tentative early. The U.S Dollar remains strong in the short term.
Gold has come under pressure and speculators may be looking for lower values. However, U.S Crude Oil has seen consistent buying as the commodity tests new highs.
Investing.com – Cryptocurrencies’ prices gained on Monday. U.S. Federal Reserve official John Williams criticised Bitcoin, saying it can never be a proper currency. Meanwhile, Iran’s central bank took a stand against cryptocurrencies.
The EUR/USD is currently trading inside a major, long-term retracement zone, bounded by 1.2166 and 1.2597. Trader reaction to this zone could determine the longer-term direction of the Forex pair.
Investing.com – Gold prices were trading lower on Monday while the U.S. dollar rose amidst higher 10-year U.S. treasury yields.
Based on last week’s close at $1338.30, the direction of the gold market this week is likely to be determined by trader reaction to the short-term 50% level at $1339.40.
Investing.com – The dollar opened the week rising against other major currencies supported by the rise in U.S. Treasury yields last Friday. This week’s currency market is occupied by a slew of economic data, as investors will see inflation data from Australia, Japan and the U.S. to look for cues.
Trade talks and private sector PMI figures due out of the Eurozone and the U.S will be providing the markets with some further guidance on whether the recent soft patch is likely to extend into the 2nd quarter.
The direction of the Dollar/Yen this week is likely to continue to be influenced by rising U.S. Treasury yields and expectations of more rate increases from the U.S. Federal Reserve later in the year. Increased demand for higher risk assets should also help underpin the USD/JPY as well as the easing of tensions over geopolitical events.
Price action this week likely to be influenced by Treasury yields, Chinese economy and stock market and commodity prices especially industrial metals like aluminum, copper and iron ore.
Investing.com - Gold prices will remain susceptible to any further gains in the dollar this week after declines on Friday on the back of a stronger greenback which was boosted by expectations for a more aggressive pace of policy tightening by the Federal Reserve this year.
Investing.com - Investors will be awaiting an update on the health of the U.S. and UK economies this week ahead of Friday’s data on first quarter growth. Monetary policy meetings in the euro zone and Japan will also be in focus.
This week, gold prices are expected to remain especially sensitive to the U.S. Dollar and Treasury yields as long as the geopolitical events remain under control.
Helping to boost yields was a comment from San Francisco Fed President John Williams who said last Tuesday that he expected U.S. inflation to rise to the U.S. central bank’s 2 percent goal this year and stay at or above that goal for “another couple of years.”